The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Connor Serge Siversky - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: Maybe a couple for Megan here. So, based on the most recent BLS data, we're seeing that SNF employment headcount is down, call
it 15%, while the hourly cost of labor is up around 15%. So I'm wondering within that framework, can you give a sense of what
percentage of the SNF labor force is currently attributable to agency labor?
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FEBRUARY 03, 2022 / 3:00PM, OHI.N - Q4 2021 Omega Healthcare Investors Inc Earnings Call
Question: Connor Serge Siversky - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: Okay. Then I think in your prepared remarks, you had mentioned that the cost was about 5x that of your standard labor pool? Or am
I mixing a message there?
Question: Connor Serge Siversky - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: Okay. And then, I mean, I know this is a bit of an abstract question, but given that we are approaching the time of the year when we
could get a sense of what the preliminary ruling looks like? I mean, what kind of rate basket increase would you view as favorable?
And then what do you think could come in as draconian given the current operating environment?
Question: Connor Serge Siversky - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: Okay. I think we'd all agree with you there. And then another one on occupancy trends. You can see that Guardian, I believe, recently
reported a pretty strong increase in referrals. I think it was to the tune of about 125%. Do you get the sense that these patterns will
reflect an occupancy gain in the coming months? Or do admissions remain difficult given the labor picture? I mean -- what I mean
to ask here, are those increases in referrals translating to occupancy at present?
Question: Connor Serge Siversky - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: It came out of Skilled Nursing News the other -- a couple of weeks back.
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FEBRUARY 03, 2022 / 3:00PM, OHI.N - Q4 2021 Omega Healthcare Investors Inc Earnings Call
Question: Connor Serge Siversky - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: Okay. And then last question for me. Just thinking about the potential portfolio sales. I mean where do you seek to push the proceeds
from these sales? I mean, would you push them directly to the share buyback, given your cost of capital and the risk of acquiring
assets in the current environment, or perhaps pushing it to the ongoing kind of maintenance CapEx or capital improvement projects
you have?
Question: Omotayo Tejamude Okusanya - CrTdit Suisse AG, Research Division - Analyst
: In regards to the loan book, you actually did take the charges according to FIFO. But going forward, I'm assuming those loans are
still performing and they're still booking all the interest income associated with it. Is that a correct assumption? Or should we be
making some adjustment for that in 2022 as well, relative to what you received in fourth quarter?
Question: Omotayo Tejamude Okusanya - CrTdit Suisse AG, Research Division - Analyst
: Okay. That's helpful. And then also during the quarter, I noticed that you did have a severance charge, I think, on LinkedIn, it looks
like Steven Insoft has kind of moved on. Could you talk a little bit about that and kind of what that may mean in regards to what the
setup for the future management team? Does he get replaced? Are those responsibilities being handled by someone else?
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FEBRUARY 03, 2022 / 3:00PM, OHI.N - Q4 2021 Omega Healthcare Investors Inc Earnings Call
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